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.1. If Point A represents the original combination of fluffernutters & blank boo

ID: 1132110 • Letter: #

Question



.1. If Point A represents the original combination of fluffernutters & blank books, then how much of each product could be produced?

5.If the owner of this factory decided to maximize production of fluffernutters, then how much of each product could be produced?

6. How many more blank books could be produced if production were moved from Point B to Point C?

7. How many more fluffernutters could be produced if production were moved from Point D to Point A?

8. What would be the opportunity cost of moving production from Point A to Point B?

9. What would be the opportunity cost of moving production from Point B to Point C?

10. What would be the opportunity cost of moving production from Point C to Point D?

Explanation / Answer

1. At point A: 6000 fluffernutters and 1000 blank books are produced.

2. At point B: 8000 fluffernutters and 500 blank books are produced

3. At point C: 4000 fluffernutters and 1500 blank books are produced

4. At point D: 2000 fluffernutters and 2000 blank books are produced

5. If the owner wants to maximize production of fluffernutters, it can produce 10,000 units of fluffernutters.

6. 1000 (i.e. 1500 - 500) more books could be produced when it moves from point B to C.

7. 4000 (i.e. 6000 - 2000) more fluffernutters could be produced when it moves from point D to A.

8. The opportunity cost is 500 blank books (i.e.,1000 - 500)

9. The opportunity cost is 4000 fluffernutters (i.e. 8000 - 4000).

10. The opportunity cost is 2000 fluffernutters (i.e. 4000 - 2000).